Chartered Institute of Public Finance and Accountancy (CIPFA) Business and Corporate Reporting (Strategic Case Study) Syllabus

Business and Corporate Reporting (Strategic Case Study) syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Business and Corporate Reporting (Strategic Case Study) in Chartered Institute of Public Finance and Accountancy (CIPFA), not a summary of it.

1. 1

   Integrating Financial and Non-Financial Reporting

   3 topics

   • Integrated Reporting and the Capitals Model
   • Sustainability and ESG Reporting
     • Climate-related financial disclosures
     • Social value and outcome reporting
   • Performance Reporting to Stakeholders
2. 2

   Advanced Financial Reporting Judgements

   3 topics

   • Application of Complex Accounting Standards
   • Revenue Recognition in Complex Arrangements
   • Financial Instruments Recognition and Measurement
     • Classification of financial assets and liabilities
     • Impairment and expected credit losses
3. 3

   Case Study Analysis and Synthesis

   4 topics

   • Analysing the Scenario and Identifying Issues
   • Financial Analysis and Interpretation
     • Ratio analysis and trend evaluation
     • Benchmarking against comparators
   • Evaluating Options and Making Recommendations
   • Professional Communication and Report Writing

Business and Corporate Reporting (Strategic Case Study) flashcards for Chartered Institute of Public Finance and Accountancy (CIPFA)

22 of 51 cards from the Business and Corporate Reporting (Strategic Case Study) deck — real questions with worked answers.

1. What is Integrated Reporting (<IR>) as defined by the IFRS Foundation / International <IR> Framework?

   A concise communication about how an organisation's strategy, governance, performance and prospects, in the context of its external environment, lead to the creation, preservation or erosion of value over the short, medium and long term.

2. Name the six capitals in the Integrated Reporting capitals model.

   Financial; Manufactured; Intellectual; Human; Social and relationship; and Natural capital.

3. What are the eight Content Elements of an integrated report under the <IR> Framework?

   Organisational overview and external environment; Governance; Business model; Risks and opportunities; Strategy and resource allocation; Performance; Outlook; and Basis of preparation and presentation.

4. In Integrated Reporting, what is meant by 'value creation, preservation or erosion'?

   The change in the stocks of the six capitals over time caused by an organisation's business activities and outputs — value can be created for the organisation itself and for others (stakeholders, society, environment).

5. List the seven Guiding Principles of the International <IR> Framework.

   Strategic focus and future orientation; Connectivity of information; Stakeholder relationships; Materiality; Conciseness; Reliability and completeness; and Consistency and comparability.

6. What distinguishes ESG reporting from traditional financial reporting?

   ESG reporting communicates Environmental, Social and Governance performance and impacts (often non-financial and qualitative), addressing a broad stakeholder group, whereas financial reporting focuses on monetary performance and position primarily for investors and creditors.

7. What do the IFRS Sustainability Disclosure Standards IFRS S1 and IFRS S2 cover?

   IFRS S1 sets general requirements for disclosure of sustainability-related financial information; IFRS S2 sets specific requirements for climate-related disclosures (including governance, strategy, risk management, and metrics and targets).

8. Define Scope 1, Scope 2 and Scope 3 greenhouse gas emissions.

   Scope 1: direct emissions from owned/controlled sources; Scope 2: indirect emissions from purchased electricity, heat or steam; Scope 3: all other indirect emissions in the value chain (e.g. suppliers, product use, travel).

9. What is 'double materiality' in sustainability reporting?

   The principle (central to the EU CSRD/ESRS) that an entity reports both how sustainability matters affect its financial performance (financial materiality) and how the entity's activities affect society and the environment (impact materiality).

10. What is the difference between the TCFD framework and 'greenwashing'?

    TCFD (Task Force on Climate-related Financial Disclosures) is a structured framework for credible climate risk disclosure across governance, strategy, risk management and metrics; greenwashing is the practice of making misleading or unsubstantiated claims about environmental performance.

11. In stakeholder performance reporting, what is the difference between financial and non-financial performance measures?

    Financial measures are expressed in monetary terms (e.g. profit, ROCE, EPS); non-financial measures capture operational, social or environmental performance (e.g. customer satisfaction, staff turnover, emissions, on-time delivery).

12. What four perspectives make up Kaplan and Norton's Balanced Scorecard?

    Financial; Customer; Internal business processes; and Learning and growth (innovation).

13. What is a Key Performance Indicator (KPI) and what makes one effective?

    A quantifiable measure used to evaluate success against objectives; effective KPIs are relevant, measurable, aligned to strategy, comparable over time, and understandable to the intended audience.

14. Distinguish between leading and lagging performance indicators.

    Leading indicators predict or drive future performance (e.g. order book, training hours); lagging indicators report outcomes after the event (e.g. realised profit, market share).

15. What is the public sector concept of Value for Money (VFM) and its '3 Es'?

    Value for Money assesses the optimal use of resources via Economy (minimising input cost), Efficiency (maximising output per input), and Effectiveness (achieving intended outcomes/objectives). Some frameworks add Equity as a fourth E.

16. Under IFRS, when is an item recognised in the financial statements (recognition criteria per the Conceptual Framework)?

    When it meets the definition of an element (asset, liability, etc.) and recognition provides relevant information and a faithful representation, having considered the cost-benefit constraint.

17. What is the IFRS 13 'fair value hierarchy' and its three levels?

    Level 1: quoted (unadjusted) prices in active markets for identical assets/liabilities; Level 2: inputs other than quoted prices that are observable directly or indirectly; Level 3: unobservable inputs (entity's own assumptions).

18. Under IFRS 16, how does a lessee account for most leases?

    The lessee recognises a right-of-use asset and a lease liability at the present value of lease payments; the asset is depreciated and the liability is unwound with interest, replacing straight-line operating lease expense.

19. How is goodwill calculated on a business combination under IFRS 3?

    $$\text{Goodwill} = \text{Consideration transferred} + \text{NCI} + \text{Fair value of previously held interest} - \text{Fair value of net identifiable assets acquired}$$

20. Under IAS 36, when is an asset impaired and how is the impairment loss measured?

    An asset is impaired when its carrying amount exceeds its recoverable amount; the impairment loss is the excess, where recoverable amount is the higher of fair value less costs of disposal and value in use.

21. State the five-step revenue recognition model in IFRS 15.

    1. Identify the contract; 2. Identify the performance obligations; 3. Determine the transaction price; 4. Allocate the transaction price to the performance obligations; 5. Recognise revenue when (or as) each performance obligation is satisfied.

22. Under IFRS 15, what is a 'performance obligation'?

    A promise in a contract to transfer to the customer a distinct good or service (or a series of distinct goods/services that are substantially the same and have the same pattern of transfer).

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